More than 210,000 businesses are operating illegally without employers' liability insurance, according to Axa Insurance.
More than 210,000 businesses are operating illegally without employers' liability (EL) insurance, according to Axa Insurance.
The FT reported today that nearly 1.8m employees are without cover as a result.
Axa also claimed that 16,000 businesses were operating without any insurance at all - leaving a further 136,000 employees at risk.
In a statement the insurer said: "Alarmingly, 55 per cent of these companies are in the retail, distribution and transport sectors.
"Not only are these businesses putting themselves at risk by not being protected against issues such as fire and theft, but it also means that their employees are not covered."
Last week the chancellor announced a formal review of employers' liability insurance. He admitted that the soaring cost of EL insurance was hitting some businesses hard.
Mark Cliff, commercial distribution director at Axa, said: "We are concerned that this lack of cover threatens the future viability of small businesses and has a knock-on effect for their employees."
